Government data had previously shown an increase of 287% in new companies since 2020, promoted largely by tourism. | Photo credit: Imran Nissar/The Hindu
A few months ago, Ishfaq Ahmad (30) entered the hospitality sector ensuring the lease of a property in the picturesque destination of Pahalgam. Pag the lessor ₹ 25 Lakh for a hotel that includes 12 rooms.
Ahmad was looking forward to a booming tourism season, with all the indicators that pointed to significant growth in the sector.
Impact or terrorism on tourism
However, on April 22, a terrorist attack against tourists in the Prados de los Baisaranos shattered their business. Since then, the meadows have been splashed with security forces, sifting each centimeter in the area to gather evidence and locate the terrorists.
“The 12 rooms of my hotel are empty with guests who cancel their reservations,” said Ahmad.
According to him, tourism is the most fragile sector in the valley, and one should think several times before investing in it.
Following Pahalgam’s terrorist attack, the tourism sector, deal with not only with immediate financial losses but also with the psychological burden of violence as well.
Many young entrepreneurs are now reconsidering their plans to invest in the industry, given their fragility.
Ovais Mushtaq, a young adventure tourism entrepreneur, said it was natural for incidents such as Pahalgam to discourage young entrepreneurs to invest in tourism.
The terrorist attack of April 22 in Pahalgam has thrown a shadow on the prosperous tourism sector of Jammu and Kashmir, impacting young entrepreneurs who recently ventured into hospitality and adventure tourism. | Photo credit: PTI
“There is uncertainty and will continue until the soil sitting improves,” he said.
However, Javed Ahmad has, the president of the Chamber of Commerce and Industries of Cashmiro (Kcci) said it was too early to say something.
“People invested corners in the tourist infrastructure in recent years. We hope that the industry will soon return to normal,” said Ha.
He said the valley was in shock after the terrorist attack, but expressed the hope that the entire tourism sector, including new companies, would revive soon.
Start Boom
Approximately in recent years, Jammu and Kashmir’s start ecosystem has seen significant growth with the introduction of J&K’s start policy. The policy provides financial assistance, including initial financing, patent support and aid with the registration provided by the Department for the Promotion of Industry and Internal Trade (DPIIT). Since 2020, the region has witnessed an increase of 287 percent in new companies, and tourism emerges as a key growth sector.
Official data suggest that the number of new companies increased from 237 to 2020 to 917 in 2024.
According to the 2024-2025 Economic Survey, Jammu and Cashmira registered a massive influx of tourists, with 2.36 million rupees, including 0.65 Lakh Foreign, 5.12 Lakh of Peregrinos Amarnath and 94.56 Lakh Vaishnav.
House houses
“I wanted to register my house under the government’s policy of the government, but the recent attack has led me to change my mind. An unpleasant incident could address it in serious problems,” said an unemployed young man, who declined to be summoned by name.
Given the increase in tourist arrivals, the Government promoted accommodations and family houses in various places. Under family homes, 2,246 were registered, with a total bed capacity or 16,455. In peripheral and virgin destinations such as Gurez Valley, family homes quickly gained popularity.
However, the terror strike of April 22 led the government to close almost 48 tourist destinations, particularly sites beyond what is more rhythm, that huge hero for adventure tourism and local economic growth.
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Posted on May 3, 2025